2026-VIL-131-GSTAT-AGR
  1. Home
  2. 2026-VIL-131-GSTAT-AGR

SGST Tribunal

GST - Confiscation and penalty proceedings under Section 130 read with Section 122 of CGST Act, 2017 - Maintainability of Revenue appeal confined to amount of fine where penalty in lieu of confiscation of goods has already been set aside by first Appellate Authority - First Appellate Authority set aside the orders of the Adjudicating officer holding that seizure and confiscation under Section 130 cannot be resorted to where goods are merely found unaccounted, and that the Department ought to have initiated proceedings under Section 73/74 of the Act instead - Whether an appeal may be filed against the order of fine alone where the penalty imposed in lieu of confiscation of goods under Section 130 has itself been set aside by FAA - HELD – The Section 35(1) of the CGST Act requires every registered person to maintain true and correct accounts, and Section 35(6) provides that where such accounts are not maintained, the proper officer shall determine the tax payable on unaccounted goods as if such goods had been supplied, applying the provisions of Section 73 or 74 mutatis mutandis - Where excess or unaccounted goods are found on survey of business premises, the proper officer is empowered only to initiate proceedings under Section 73/74 of the Act and not under Section 130 for confiscation and levy of penalty and fine - Proceedings under Section 130 read with Rule 120 initiated in the present matters, instead of proceedings under Section 73/74, are not sustainable in law - The FAA has rightly quashed such proceedings and set aside the demand of penalty and fine - Once the very foundation of the proceedings under Section 130, including the fine imposed thereunder, stands quashed, there remains no question of the amount of fine surviving independently or being left open for maintenance by the Tribunal - Direction by Commissioner of State Tax to file the present appeals confined only to the fine, without challenging the quashing of the underlying proceedings, reflects want of application of mind – The Revenue appeals are held to be without merit and are dismissed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?